Tuesday, November 11, 2014

How Google Works gives a very
interesting, and actually quite inspiring, look at the philosophy of management
behind Google. It’s written by former CEO Eric Schmidt and another top Google executive
Jonathan Rosenberg.

It’s an easy read and contrary to
a lot of other management books it doesn’t have a lot of very LOUD and flashy
models of how to handle everything. But it does convey an attitude of thinking
very big, hiring the best possible people, trusting them and supporting them in
pursuing their ideas.

A very interesting slogan is “Default
to open”, and this attitude applies in many areas – like keeping employees
informed, creating partnerships, or not trying to tie costumers to your
service.

It’s a bet, but they take that bet by
default: “With open, you trade control for scale and innovation”.

There are also a few good observations
about platforms that are worth quoting:

Airbnb, Uber, Square,
Kickstarter, Netflix, Spotify… “These companies assembled existing technology
components in new ways to re-imagine existing business. They set up platforms
for customers and partners to interact, and use those platforms to create highly
differentiated products and services. This model can apply just about anywhere:
Travel, automobiles, apparel, restaurants, food, retail …”

“Whereas the twentieth century
was dominated by monolithic, closed networks, the twenty-first will be driven
by global, open ones”.(p. 83)

“A corporation’s relationship
with consumers is one-way. GM decides how to design, manufacture and market a
new product to its consumers, and sells it through a network of dealerships. In
contrast, a platform has a back-and-forth relationship with consumers and
suppliers. There’s a lot more give and take”.(p. 245)